Again, other might feel differently here.b) Skin in the game: as a conservative investor, I understand that the dirty secret of industries that the waterfall compensation is in the line with me and incentivizes sponsors to take more risk.

It's out hard earned money, so looking for someone who has skin in the RE game also to offer us better advice/strategies and future planning.

That's not included rehab costs, r.e. agents / attorney fees, closing costs, insurance etc and you'll still need some 'skin in the game'.There are even JV offers on earnest monies (they'll put up the full amount of the EMD) that I've heard of.

We just felt if the customer had a little "skin in the game" they would be less inclined to pull a loan that we were currently working on. 

However, I generally collect a deposit so that they have skin in the game and less likely to walk away.

"You can shear a sheep many times, but only skin him once."

The positive part is you basically have a mentor that will qualify your deal for you and help you be successful because that have skin in the game.

It is no skin off my back!

People get "funny about their money".You need a thick skin in this business.There is something called "defamation of character" and if she puts things in writing that you have documented about how she is going to ruin you she is not smart.

You can try to get the seller to agree to a thirty day window for you to find an end buyer and only have as little as $10 of skin in the game.